The spot price of gold briefly crossed the $2,100 mark for the first time ever Sunday night, setting a new world record.
The yellow metal hit its previous all-time high, $2,067, in the summer of 2020 during the COVID-19 pandemic. Analysts had predicted gold was headed for a new record last week.
At press time, bullion’s spot price had come down significantly, to $2,024 an ounce. Many market watchers characterized that as a standard pullback.
“Lots of gold headlines are to be expected,” Matt Simpson, a market analyst at City Index and Forex.com, wrote on X. “But I remain suspicious of the move, given it occurred during low liquidity trade.”
Jim Wyckoff, a senior market analyst for Kitco, said that “gold and silver prices have probably peaked for at least a few weeks, if not a while longer, but after that new highs are probable—likely sometime in 2024.”
Most attributed gold’s recent bull run to its reputation as a “safe haven,” noting it’s where investors tend to flock when times get rough.
“The more volatile the world gets, the better gold tends to do,” wrote Bloomberg.
Others pointed to growing acquisition of gold by central banks and other economic factors.
“We believe the main factors buoying gold in 2024 will be interest rate cuts by the U.S. Fed, a weaker U.S. dollar and high levels of geopolitical tension,” said BMI, a Finch Solutions research unit, as quoted by CNBC.
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